Former executive released on bail

Staff writer, with CNA

Sat, Nov 10, 2012 - Page 13

A former executive of a local securities firm was released yesterday on bail of NT$2 million (US$68,600) after being questioned by prosecutors overnight in connection with allegations of fraud and insider trading.

Sam Hsieh (謝青良), former vice manager of ING Securities and Investment Trust Co (ING SITC, 安泰投信), the local unit of Dutch financial services provider ING Group, had handed himself in to prosecutors on Thursday, accompanied by his lawyer, four hours later than the time set by prosecutors.

Hsieh’s ex-wife, Liu Ming-chia (劉明佳), was also summoned and questioned, but later allowed to leave.

Hsieh is suspected of manipulating the share price of Ablerex Electronics Co (盈正) in 2010 and selling his stock in the company to two funds entrusted by the government to his company for stock investment.

Newspapers said Hsieh bought 50,000 shares of Ablerex at a price of NT$80 per share in June 2010. The company went public on Sept. 9 of that year via an initial public offering and its stock price peaked at NT$546 on Sept. 17.

At that time, the reports said, Hsieh used the government’s Labor Insurance Fund and Labor Pension Fund to buy 600,000 shares, while selling off his shares and those belonging to people with whom he allegedly was in collusion.

Ablerex’s stock price then began a sharp slide and Hsieh sold the government’s stake in Ablerex on Oct. 6, 2010, at a price of NT$300 per share, resulting in a huge loss to the government, according to the reports.

When the scandal came to light earlier this month, ING SITC fired Hsieh and agreed to compensate the government for its losses.

Hsieh was reported to have divorced his wife in July and transferred three luxury apartments to her name in an apparent attempt to conceal his assets.

The prosecutors summoned Hsieh after learning that he had already remitted NT$40 million of his fortune to a Hong Kong bank account and intervened to stop him from wiring another US$500,000 there on Thursday, as well as imposing a travel ban on him.